in fundamental accounting terms what is happening with the BBI...

in fundamental accounting terms what is happening with the BBI prices and the BEPPA preference shares is known as a death spiral.

Which one is better to buy is all a function of relative price between the two, but history has shown the prefs will do better if the company survives.

However, I think anyone looking to enter this fray should stick to the BBI bond type debt, some of which is trading around 45 cents when I last look and has a 2012 maturity as well. It is these bondholders who will ultimately hold the whip hand if this group survives.

As far as I see it, the company seems to be able to service all its corporate debt, but is going to have trouble come rollover time for both the prefs and these bonds I am referring to, and the bondholders have priority in that situation.